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Excellence in immunization

MUFID MAJNUN-UNSPLASH

The city government of Carmona, Cavite is a showcase of how leadership and community participation result in the effective delivery of health services, particularly immunization.

Carmona City achieved 85% fully immunized child (FIC) coverage rate in 2023 and 97.8% influenza immunization rate for senior citizens, as well as recorded zero cases of measles, polio, diphtheria, and neonatal and maternal tetanus for the past several years. In 2022 and 2023, Carmona City was among the Department of Health (DoH) Golden Jab Awardees for achieving the highest vaccination coverage for measles and rubella supplemental immunization among LGUs nationwide.

How did Carmona City achieve these impressive immunization milestones?

Mayor Dahlia Loyola presented Carmona City’s immunization initiatives during the Health Connect media forum in celebration of World Immunization Week 2024 and the 50th anniversary of the Expanded Program on Immunization (EPI).

First, the city government provides a supportive environment for immunization by consistently increasing its annual budget allocation for purchasing vaccination supplies and additional vaccines, alongside enhancements in health facilities and cold chain logistics.

Health workers, public school teachers and students from Carmona City participated in the S.H.I.E.L.D. Against Cervical Cancer Program Strengthening HPV Immunization towards Elimination through Leadership Development. In partnership with the Philippine Foundation for Vaccination (PFV) and Raising Awareness on Influenza to Support Elderlies (RAISE) Coalition, the LGU organizes community vaccination for senior citizens on Sept. 11 of every year in celebration of Grandparents’ Day. House-to-house immunization activities are also regularly conducted to cater to bedridden residents.

In 2022, the LGU launched the “Bata V.I.P ka sa Carmona” vaccination incentive program to encourage students from Kinder to Grade 12 to get their complete and updated COVID-19 vaccines. The program provided a P500 cash incentive to all students who completed their first two doses and succeeding two booster shots, coupled with rice assistance to their parents. Through their Biyaheng Bakuna Centers initiative, the city government provides residents, particularly those from far-flung municipalities, with free transportation to vaccination centers.

During every official event and activity, City Health Office and barangay health stations personnel include information dissemination on the importance of immunization in maintaining and improving the health of our constituents. Mothers Class sessions are held every Bakuna Day to empower parents and enhance immunization literacy.

Town hall meetings are organized, and advocacy videos are shown to build trust in vaccines and bolster vaccine uptake during supplemental immunization activities.

Second, the city government provides policy support for immunization. The then Carmona Municipal Council passed Municipal Resolution No. 018-2010 to support the DoH “Bakuna ang Una sa Sanggol at Ina” program by allocating the necessary funds for vaccination and other related EPI activities. They also issued Executive Order No. 61 directing the prioritization and intensification of Carmona’s vaccination program. The city government also utilizes the Local Disaster Risk Reduction Management Office (LDRMM) Fund to purchase additional vaccines and supplies for outbreak response activities.

Third, the city government strengthens community action by initiating Barangay Emergency Health Response Teams for timely disease surveillance and reporting. Barangay health workers (BHWs) as well as family health workers (FHWs) provide invaluable support to supplemental and catch-up immunization activities.

The LGU engages with various community stakeholders and partners such as NGOs, civil society organizations, the Department of Education (DepEd), parent-teacher associations (PTAs), and religious organizations to ensure effective information dissemination and immunization demand generation.

Fourth, health workers’ skills are developed through local training and budgetary support for capacity-building seminars. Interpersonal communication training has transformed BHWs to “Bakuna Champions” who are boosting vaccination updates in Carmona City.

Lastly, the city government reoriented health services through the establishment of the Health Promotion Unit and Health Promotion Board. This reorientation underscores the shift towards prioritizing health promotion and disease prevention alongside basic health services.

Looking ahead, the city laid out the administration’s plans. First, develop a comprehensive immunization plan. Second, strengthen the city’s cold chain infrastructure. Lastly, increase the annual budget allocation for capacity development in support of immunization.

The Mandanas Ruling by the Supreme Court in 2018 and confirmed in 2019 mandates a substantial increase in the share of National Government tax revenue transfer to local governments. It is expected to provide opportunities for improving service delivery through enhanced decentralization.

While awaiting the full implementation of the Mandanas Ruling, Mayor Loyola called on the National Government to provide budgetary support to second- to sixth-class municipalities to enable them to implement effective health programs including immunization initiatives. First-class LGUs are more than capable of funding immunization programs if they want to, she added.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that  affect Filipinos.

Debt yields drop on May inflation data

YIELDS on government securities (GS) mostly went down last week as Philippine inflation picked up at a slower pace than expected last month.

Yields, which move opposite to prices, fell by an average of 2.73 basis points (bps) week on week, according to data from the PHP Bloomberg Valuation Service Reference Rates as of June 7 posted on the Philippine Dealing System website.

Rates at the short end were mixed, with the rate of the 91-day Treasury bill (T-bill) going down by 3.18 bps to 5.7038%. Meanwhile, yields on the 182- and 364-day T-bills went up by 4.07 bps and 1.61 bps to 6.0003% and 6.0814%, respectively.

At the belly of the curve, yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 2.65 bps (to 6.2818%), 4.05 bps (6.3418%), 5.09 bps (6.3992%), 5.7 bps (6.4564%), and 6.27 bps (6.5645%), respectively.

At the long end, the 10-, 20-, and 25-year debt papers dropped by 5.69 bps (to 6.6947%), 0.32 bp (6.8254%), and 2.78 bps (6.8141%), respectively.

GS volume traded rose to P14 billion on Friday from P12.51 billion on May 31.

Analysts attributed the mostly lower GS yields last week to softer-than-expected May inflation.

“The May inflation was a surprise to the downside as market expectations were at 4% and the 3.9% figure was on the lower end of BSP’s (Bangko Sentral ng Pilipinas) expected range.

Although it was at a six-month high, it was mostly expected to spike until July due to base effects,” a bond trader said in a Viber message.

The Philippine consumer price index (CPI) accelerated to a six-month high of 3.9% in May from the 3.8% pace in April, the government reported last week.

Still, this was slower than the 6.1% in May last year. This was also within the BSP’s 3.7-4.5% forecast fro the month and was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts.

“Yields were still lower for the week as they tracked the movements in US Treasury (UST) yields and was instead spurred on by the inflation print,” the bond trader added.

“UST yields [moving] lower reflect market pricing in Federal Reserve rate cuts as well, so that means easier for BSP to deliver on their own projected cuts,” a second bond trader added.

On Thursday, benchmark 10-year US Treasury yields were a touch higher at just over 4%, although that was still near their lowest in two months, after data this week hinted that the US labor market is finally cooling.

That included private US payrolls on Wednesday and a report on Tuesday that showed job openings fell in April to the lowest in more than three years.

However, on Friday, surprisingly strong US monthly jobs data dimmed hopes that the Federal Reserve would soon follow euro zone and Canadian interest rate cuts, causing Treasury yields to shoot higher.

The world’s largest economy added 272,000 jobs last month, beating the 185,000 hires predicted by economists and derailing an investor consensus that the jobs market had slackened just enough to push consumer prices lower.

The benchmark 10-year US Treasury yield, a benchmark for borrowing rates globally, leapt over 15 bps after the jobs report, to 4.4335%, its biggest one-day jump in about two months.

The two-year yield, which tracks interest rate expectations, climbed nearly 17 basis points to 4.8868%, following six straight days of declines until Thursday. Bond yields rise as prices fall.

Money market pricing just after the payrolls data implied traders saw the Fed only starting to cut rates from their 23-year high of 5.25-5.5% by November. US interest rate futures also lowered the chances of the Fed’s cutting rates by 25 basis points in September to 56%, down from around 70% on Thursday, according to LSEG’s Fedwatch.

For this week, the bond traders said GS yield movements will depend on the latest US jobs data released on Friday.

“Market will react to the [non-farm payrolls] figure from the US and its consequent effect on rate cut expectations by the Fed. While the BSP has stated that it can reduce ahead of the Fed, it is unlikely to do so given the potential effects on the peso-dollar exchange rate,” the first bond trader said. — Karis Kasarinlan Paolo D. Mendoza with Reuters

Mass fish deaths in Mexico blamed on severe drought

REUTERS

ANAHUAC, Mexico — Thousands of dead fish have blanketed the surface of a lagoon in Mexico’s northern state of Chihuahua, and officials are blaming an intense drought. The fish deaths at the Bustillos Lagoon, by the town of Anahuac in Chihuahua, came during long dry spells as temperatures have climbed above 40 degrees Celsius. The lagoon’s water levels are dangerously low, officials said.

Some form of drought is afflicting nearly 90% of Mexico, the highest rate since 2011, according to government data.

Chihuahua state has been hit particularly hard with most of its territory engulfed by the most extreme levels of dryness.

There was much less water in the lagoon for the fish to live in, and the remaining water was of poor quality, according to Irma de la Pena, head of the Ecology Department in the city of Cuauhtemoc.

“When the amount of water decreases, the pollutants become more concentrated and therefore they also affect the species that live here,” Ms. De la Pena said.

Mass fish deaths in the area have happened in previous years when the lagoon dried up and fish stranded. Livestock, including cows and donkeys, are also perishing as dams run low and farmers struggle to secure water.

Heat and drought have become so severe that many people who rely on agriculture have packed up and left.

“It’s very abandoned because since it doesn’t rain… they no longer dare to continue living here,” said Jesus Maria Palacios, a raiser of livestock in Cuauhtemoc.

At the lagoon, authorities are racing to cover the dead fish with lime, concerned their rapid decomposition under the baking sun could endanger public health by attracting insects and spreading disease. They are asking local organizations to help.

“What we need is support, especially with the potential we have for a health issue,” said Saul Sausameda, president of the Anahuac community. — Reuters

Eight Jetour T2 SUVs up for grabs for Midori customers

From left are Miss Midori Queen and official Miss World candidate (from Tarlac) Jasmine Omay; BB International Leisure and Resort Development Corp. Director and Casino Head Edgar Lim; Jetour Auto Philippines, Inc. (JAPI) Managing Director Lito Jose; and Marketing Director May de los Santos. — PHOTO BY KAP MACEDA AGUILA

FOLLOWING a successful partnership that saw the raffling off of four Jetour vehicles (two X70 Journey seven-seater SUVs and two Dashing crossovers), Jetour Auto Philippines, Inc. (JAPI) and Midori Clark Hotel and Casino recently forged another deal that would give away a total of eight Jetour T2 4WD SUVs to lucky patrons.

“Midori Clark Hotel and Casino was our first partner hotel when we launched in the Philippines in March 2023. Their trust in our brand has been instrumental in our success… recognizing the potential in the world-renowned Jetour brand,” said JAPI Managing Director Miguelito Jose.

Eligible to join the raffle are hotel and casino guests who sign up for test drives. Two winners were already picked last May 31 and June 1. The next raffle draws will be on July 26 and 27, Sept. 27 and 28, and Nov. 29 and 30. Jetour T2 units are on display at Midori Clark Hotel and Casino, with test drives available every weekend until the end of the year.

Midori Clark Hotel and Casino is managed by BB International Leisure and Resort Development Corp. It is said to be the first luxury hotel in the Clark Freeport Zone. JAPI is the exclusive distributor of Jetour vehicles — offering a range of high-technology, quality-engineered SUVs, crossovers, and EVs.

For more information, visit www.jetourauto.ph and www.midorihotel.com.

Top Frontier Investment Holdings, Inc. to hold 2024 Annual Stockholders’ Meeting on July 9 via remote communication

NOTICE OF 2024 ANNUAL STOCKHOLDERS’ MEETING
July 09, 2024

The 2024 Annual Stockholders’ Meeting of TOP FRONTIER INVESTMENT HOLDINGS, INC. will be held on July 09, 2024 (Tuesday) at 2:00 p.m. The Company will conduct the Meeting through remote communication.

The proceedings will be livestreamed at the Company’s website www.topfrontier.com.ph. The Chairman will preside the Meeting at 40 San Miguel Avenue, Mandaluyong City, Metro Manila, Philippines.

The Agenda of the 2024 Annual Stockholders’ Meeting is as follows:

  1. Certification of Notice and Quorum
  2. Approval of the Minutes of the Annual Stockholders’ Meeting held on August 03, 2023
  3. Presentation of the Annual Report
  4. Ratification of Acts and Proceedings of the Board of Directors and Corporate Officers
  5. Appointment of External Auditors
  6. Election of the Board of Directors
  7. Approval of the Per Diem Allowance for Directors
  8. Other Matters
  9. Adjournment

The electronic copies of the Minutes of the Annual Stockholders’ Meeting held on August 03, 2023, the Notice of the 2024 Annual Stockholders’ Meeting, the Definitive Information Statement (together with the Management Report), the sample ballot and proxy form, the 2023 Annual Report (SEC Form 17-A), the 1st Quarter 2024 Report (SEC Form 17-Q), the summary of the resolutions of the Board of Directors since August 03, 2023, and other pertinent documents for the 2024 Annual Stockholders’ Meeting, are available at the Company’s website and can be easily accessed through this link: www.topfrontier.com.ph/index.php/investor/TFASM2024. The aforementioned Company reports and other disclosures are likewise available in the Philippine Stock Exchange Electronic Disclosure Generation Technology (PSE Edge).

Stockholders can only attend the 2024 Annual Stockholders’ Meeting by remote communication by following the procedure summarized below.

a. Stockholders may view the livestream of the meeting by accessing the link provided in the Company website www.topfrontier.com.ph. There will be an audiovisual recording of the proceedings, for future reference.

b. Attendance of the stockholders of record as of May 28, 2024 shall be counted, and their votes will be cast, through ballots submitted by the stockholders or their proxies. The deadline for the submission of ballots and proxies is on June 25, 2024. Ballots and proxies may be sent through email at stockholders@topfrontier.com.ph or by mail to the SMC Stock Transfer Service Corporation office located at the 2nd Floor, SMC Head Office Complex, No. 40 San Miguel Avenue, Mandaluyong City 1550, Metro Manila, Philippines. Validation of ballots and proxies will be on July 02, 2024 at 2:00 p.m. at the SMC Stock Transfer Service Corporation office located at the above-mentioned address.

For an individual, his/her ballot or proxy must be accompanied by a scanned copy of his/her valid government-issued identification card with photo for verification of identity. For a corporation, its ballot or proxy must be accompanied by its Corporate Secretary’s certification setting the representative’s authority to vote and/or represent the corporation in the meeting, where applicable.  Ballots and proxies need not be notarized. For your convenience, a sample ballot/proxy is attached to the Definitive Information Statement. Hard copies of the ballots and proxies and notarized Secretary’s Certificates are requested to be sent to the SMC Stock Transfer Service Corporation office located at the above-mentioned address within a reasonable time thereafter.

c. The Company shall entertain questions and comments after the Presentation of the Annual Report. Questions and comments to the Board of Directors and/or Management may be sent in advance (or may be written in the ballot/proxy) by email to stockholders@topfrontier.com.ph. Questions which were not answered during the meeting shall be forwarded to the Office of the Corporate Secretary for appropriate response.

d. The requirements and procedure for the nomination for election to the Board, the pre-screening and evaluation of the qualifications of the nominees, and the voting procedure for all items in the Agenda (including the election of the members of the Board), are set out in the Definitive Information Statement.

e. Stockholders whose shares are lodged with brokers are requested to directly contact their respective brokers for guidance on their participation in the 2024 Annual Stockholders’ Meeting.

Should you have questions or requests for clarification on the procedure for the 2024 Annual Stockholders’ Meeting, please email them to stockholders@topfrontier.com.ph.

(Original Signed)
Virgilio S. Jacinto
Corporate Secretary and
Compliance Officer

 

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Dads: stepping out in style

IF YOU’RE going out with dad on Father’s Day, we have a few cheats so he could step out in style.

To ensure Father’s Day is truly memorable, Marks & Spencer  (M&S) is offering a helping hand in selecting the perfect gifts. Let your father figure step into style on his special day with easy iron shirts that will be their next favorite go-to tops for dinner or a trip. Surprise him with a weekender bag, Sun Smart UPF50+ sunglasses, Sun Smart UPF50+ baseball cap and some fun pajamas which are great for this season’s activities. Explore more from the latest Marks & Spencer summer collection with dad and gift him a scuff-resistant fabric crossbody bag for casual outings. Marks & Spencer has 20 stores around the country.

If you’re going out of town, upgrade Dad’s old luggage with the sleek and super lightweight Samsonite Lite-Box ALU x Hugo Boss 55/20. Its ultra-durable graphite black aluminum shell ensures extra protection for his belongings, while its smooth-rolling double-wheel design makes it easier for Dad to wheel around his luggage. The soft interior with BOSS branding lets Dad travel in style.

For more rugged adventures, there is the American Tourister Kamden II 2.0 Backpack 4. It is lightweight and has plenty of space for organizing essentials — from travel documents and his camera to his water bottle. The straps also have a non-slip grip texture and a Tractum Flex Suspension feature. There’s also the High Sierra Access 3.0 Eco Backpack, with a rain cover, water-repellent fabric, padded Airflow back panel, and adjustable waist strap. It has plenty of large compartments and is eco-friendly as it’s made from recycled PET bottles using Recyclex material technology, a plus for a planet-conscious dad.

Get dad up and running with sporty selections from Jack Nicklaus, particularly the breathable, moisture-wicking Regatta Stripe Polo, then top that off with the Champion Cotton Twill Hat, in black, white, or green.

Meanwhile, dad might like to see a good mug in the mirror (his). Upgrade his manual razor with the VS Sassoon Fresh-Clean Shaver S1. This modern upgrade delivers a clean, comfortable shave with its 3D smart-touch floating heads, dual-ring cutter, and pop-up trimmer not to mention the quick USB charging. For a sharp ’do, why not the BaByliss Precision Cut Hair Clipper or BaByliss Powerlight Hair Clipper? These advanced clippers can be used cordless and have 13 cutting lengths (for the Precision Cut hair Clipper) and 26 cutting lengths (for the Powerlight Hair Clipper).

Finally, no man can resist a good fragrance. Guess Uomo Acqua Eau de Toilette has notes of lemon and sea moss that evoke the ocean air, while a woody base adds a touch of sophistication. We’ve gone ga-ga over Maison Margiela Replica’s Sailing Day Eau de Toilette has notes of aquatic accord, red seaweed, iris absolute, and rose essence. For something definitely luxurious, Bond No. 9 FiDi Eau de Parfum is made of a blend of peppery notes with citrus, spice, and tonka bean, exuding a spicy gourmand scent.

MREIT shares inch up on share-swap deal

MREIT, Inc. emerged as one of the most actively traded stocks last week following the property-for-share swap deal with Megaworld Corp.

A total of 81.77 million MREIT shares worth P1.01 billion were traded from June 3 to 7, data from the Philippine Stock Exchange (PSE) showed. MREIT was the sixth actively traded stock last week.

The real estate investment trust (REIT) arm of Megaworld Corp. closed at P12.58 per share, picked up slightly by 0.2% from May 31’s closing price of P12.56 apiece. Since the first trading day of the year, the stock’s price has gone up by 2.3%.

“This block sale was not a surprise at all as MREIT has been quite transparent about it plans to hit 500,000 square meters (sq.m.) total gross leasable area (GLA) by the end of 2024. Despite this though, it sprinkled a bit of temporary optimism to investors as the asset infusion is expected to increase the overall cash flow of MREIT, thereby increasing its distributable income,” Jemimah Ryla R. Alfonso, equity analyst at Regina Capital Development Corp. said in an e-mail.

Although the deal did spark a wave of temporary optimism, the enthusiasm faded by the end of the week. Ms. Alfonso said that this might be because the move had already been anticipated.

Last week, Tan-led property developer Megaworld sold 79.7-million MREIT common shares at an average sale price of P12.3001 per share, equivalent to P980.32 million before the deduction for fees and taxes, said in a PSE disclosure. This is in line with the company’s fundraising efforts.

For the January-to-March period, MREIT generated P1.08 billion in revenues. Meanwhile, the company’s net profit stood at P733.13 million, 37.2% increase from P730.42-million growth in the same period last year.

“Based on our forecast, we see the infusion to add P3 billion in MREIT’s revenues,” added Ms. Alfonso. We see MREIT’s full year’s top line to reach P6 billion with the newly infused properties,” said Ms. Alfonso.

For 2023, MREIT recorded a 13% increase in its distributable net income to P2.8 billion from P2.5 billion in 2022 due to higher revenues.

The company saw a 14% increase in revenues to P4.2 billion, amid full-year contribution of four additional Grade-A office towers from January 2023, as well as steady rental escalations among current tenants, it said in a disclosure.

Last year, MREIT, Inc. signed a memorandum of understanding with its sponsor for the possible acquisition of seven offices to the portfolio of the real estate investment trust.

The assets have a total gross leasable area (GLA) of 150,500 sq.m. Once completed, MREIT’s portfolio will increase to 475,500 sq.m., 46% higher from its current 325,000 sq.m., on track to its total GLA to 500,000 sq.m. target of assets by end-2024.

MREIT’s portfolio covers 18 office properties to date. These are 1800 Eastwood Ave., 1880 Eastwood Ave., and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill.

“The barrier that we are seeing is at P13.12 per share, while the stronghold of the stock is at P12.50 per share,” said Ms. Alfonso. — Lourdes O. Pilar

Big banks’ asset and loan growth rises in Q1

THE COMBINED ASSETS of the Philippines’ biggest lenders rose in the first quarter, fueled by increasing confidence in the economy’s prospects. Read the full story.

Big banks’ asset and loan growth rises in Q1

PSEi member stocks performed — June 7, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, June 7, 2024.

Peso likely to trade sideways as market awaits Fed rate cut hints

ANGIE REYES-PEXELS

THE PESO is seen trading sideways in the coming days as the market looks ahead to the US Federal Reserve’s policy meeting this week for signals about their next move.

The local unit closed at P58.52 per dollar on Friday, strengthening by 9.1 centavos from its P58.611 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso inched down by a centavo from its P58.51 finish on May 31.

The peso gained against the dollar on Friday amid bolstered expectations of a rate cut by the Fed within this year after a softer US jobless claims report, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labor market and reducing the likelihood the Federal Reserve will be able to start rate cuts in September, Reuters reported.

Financial markets slashed the odds of a September rate cut, reducing the probability to about 53% from about 70% before the report, based on rate futures contracts, and now see roughly an even chance of two rate cuts by the end of 2024, versus about a 68% chance seen before the report.

Non-farm payrolls increased by 272,000 jobs last month, the Labor department’s Bureau of Labor Statistics said. Revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000. Estimates ranged from 120,000 to 258,000. May’s employment gains were higher than the 232,000 monthly average for the past year.

The US central bank is closely monitoring labor market conditions and economic growth to ensure it doesn’t keep rates too high for too long and overcool the economy as it tries to return inflation back to its 2% target.

Lower global crude prices also supported the peso on Friday, Mr. Ricafort added.

For this week, Mr. Ricafort said the peso could trade sideways against the greenback as the market awaits the Fed’s review, where policy makers are expected to keep rates steady at the 5.25%-5.5% range for a seventh straight time but give signals on when it will kick off its easing cycle.

The Fed’s expected pause on June 11-12 is expected to be matched by the Bangko Sentral ng Pilipinas (BSP) at its own meeting on June 27, Mr. Ricafort added.

BSP Governor Eli M. Remolona, Jr. reiterated last week that the Monetary Board could start cutting rates before the Fed despite a weaker peso recently.

He earlier said the BSP could start its easing cycle with a 25-basis-point (bp) rate cut as early as the Monetary Board’s Aug. 15 meeting and slash rates once or twice in the second semester.

The BSP kept its benchmark rate steady at a 17-year high of 6.5% at its May meeting. It raised borrowing costs by 450 bps from May 2022 to October 2023 to tame inflation.

Mr. Ricafort expects the peso to move between P58.20 to P58.70 per dollar this week. — A.M.C. Sy with Reuters

PHL shares may move sideways after US jobs data

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES could trade sideways during this shortened trading week as investors could hunt for bargains and as the latest US jobs data affected the outlook for US Federal Reserve rate cuts.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.13% or 8.90 points to end at 6,518.76, while the broader all shares index gained by 0.06% or 2.14 points to close at 3,491.93.

Week on week, the PSEi increased by 1.33% or 85.66 points from its 6,433.10 close on May 31.

“The local market was able to bounce back last week as investors digested our May inflation figure, which remained within the government’s target range. However, trading has been tepid, implying that many are still on the sidelines amid market uncertainties,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Headline inflation picked up for a fourth straight month to 3.9% in May from 3.8% in April, the Philippine Statistics Authority reported on Wednesday. This was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts and was within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target.

For this week, the market could move sideways, Mr. Tantiangco said.

“The local market is still seen to be at attractive levels. Hence, we may still see some bargain hunting moving forward. However, downside risks remain, which are seen to make it challenging for the market to sustain momentum,” he said.

“The end of El Niño is seen as a positive development for our inflation picture as pressures on our food supply and demand for electricity are expected to ease. This in turn is seen to help the market. However, the stronger-than-expected May jobs report in the US, which dents the hopes of a rate cut by the Fed soon, may weigh on sentiment,” Mr. Tantiangco added.

The US jobs data released on Friday could “weigh on stock prices if the market assumes that the BSP will not cut ahead of the Fed, or further weaken the peso if calls for the BSP to cut ahead of the Fed strengthens,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message. “In any case, it will likely be a rough week ahead and we might find the index back below the 6,500 level or the peso weakening above P59 per dollar.”

The US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labor market and reducing the likelihood the Federal Reserve will be able to start rate cuts in September, Reuters reported.

Nonfarm payrolls increased by 272,000 jobs last month, the Labor department’s Bureau of Labor Statistics said.

Mr. Tantiangco placed the market’s support at 6,400 and resistance at 6,700 for this week.

Meanwhile, 2TradeAsia.com put the PSEi’s immediate support at 6,350 and resistance at 6,600.

Philippine financial markets are closed on June 12, Wednesday, for Independence Day. — R.M.D. Ochave with Reuters

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